The price of gold has soared to nearly all-time highs, reaching close to $2,230 per troy ounce, as it aims to extend its winning streak for the fifth consecutive session on Friday. However, trading volumes have remained light, with market participants likely observing Good Friday. Although, we can see gold struggling on a shorter time frame.

The allure of gold is attracting buyers, driven by market sentiment leaning towards major central banks initiating an interest rate-cut cycle this year.

Investors are increasingly confident in gold as they anticipate three rate cuts from the US Federal Reserve (Fed) in the coming months. Chicago Fed President Austan Goolsbee, adopting a dovish stance, anticipates three cuts but emphasizes the need for further evidence of inflation subsiding before implementing any action.

In Europe, European Central Bank (ECB) policymakers are considering the feasibility of achieving the ECB’s inflation goal of 2%. However, ECB executive board member Fabio Panetta remarked that “the conditions to begin easing monetary policy are emerging,” suggesting potential rate cuts in the future. The Swiss National Bank’s unexpected rate cut at its March meeting has fueled speculation that other major central banks might follow suit.

Despite the Bank of Japan ceasing its negative rate policy, it is expected to maintain an accommodative stance for the foreseeable future, further bolstering the appeal of gold as a safe-haven asset.

In addition to monetary policy developments, geopolitical tensions have also contributed to the surge in gold prices. The United Nations Security Council recently passed a resolution urging a ceasefire between Israel and Hamas, along with the release of hostages. However, the conflict in the Gaza Strip persists, with Palestinian militants yet to release captives. Reports from the Palestinian Red Crescent indicate intensified violence, with Israeli forces besieging additional Gaza hospitals, trapping medical personnel amidst intense gunfire. The escalation of geopolitical tensions has heightened demand for safe-haven assets like gold.


In the local market, the per tola price of 24 karat gold witnessed a significant increase of Rs.3,800, reaching Rs.234,800 compared to its previous sale at Rs.231,000. Similarly, the price of 10 grams of 24 karat gold surged by Rs.3,258 to Rs.201,303 from Rs.198,045. Meanwhile, 10 grams of 22 karat gold saw a rise to Rs.184,528 from Rs.181,541.

The All Sindh Sarafa Jewellers Association also reported an increase in silver prices, with the per tola price rising by Rs.20 to Rs.2,600, and the price of ten grams of silver increasing by Rs.17.15 to Rs.2,211.93.

On the international front, the price of gold also saw an upward trend, climbing by $40 to $2,254 from $2,214.



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